Hoang Anh Gia Lai (HAG) adjusts list of investors buying 130 million shares
Hoang Anh Gia Lai Joint Stock Company - HAGL (Code: HAG) has just announced the Board of Directors' resolution approving the adjustment of the plan to offer 130 million individual shares at a price of VND 10,000/share.
Specifically, in the list of investors, Mr. Nguyen Duc Quan Tung, the only individual participating, withdrew from the offering. Initially, Mr. Tung planned to buy 28 million shares, but has now been replaced by another investor named Le Minh Tam. It is expected that after this issuance plan, Le Minh Tam will increase his ownership to 2.65% at Hoang Anh Gia Lai.
Hoang Anh Gia Lai (HAG) changes investor structure to buy 130 million shares (Photo TL)
Meanwhile, two other institutional investors, Thaigroup Corporation and the securities company where Mr. Nguyen Duc Quan Tung is currently the Acting General Director, still maintain the expected number of shares purchased at 52 million and 50 million shares.
According to the initial offering plan, the number of HAG shares to be offered is 130 million shares, equivalent to the expected amount of VND 1,300 billion. This amount will be used to pay off HAGL's principal and bond interest, and to restructure loans at subsidiary Gia Cattle Lo Pang. In addition, the capital will also be used to supplement working capital for Hung Thang Loi Gia Lai Company Limited.
Hoang Anh Gia Lai's 2023 is associated with the word debt repayment
Throughout 2023, Hoang Anh Gia Lai continued to report profits of hundreds of billions of dong each quarter. However, this unit still had to sell its assets one by one, mostly to pay off debts.
For example, recently, Hoang Anh Gia Lai had to transfer all shares of the Bapi pork chain. Of which, HAGL sold all 2.75 million BAPIHAGL shares, with a par value of VND10,000/share. If the transaction is successful, BAPI Hoang Anh Gia Lai will no longer be an affiliated company of HAGL.
BAPI Hoang Anh Gia Lai was established in May 2022 with a charter capital of 50 billion VND and is currently a distribution chain of Bapi banana-fed pork products. The company's headquarters is located in Pleiku City, Gia Lai Province. And according to Mr. Duc, who has shared many times, the potential of "Bapi banana-fed pork" is huge.
In another move, HAGL has just sold both hospitals and hotels to raise money to pay off debts. Of which, HAGL has transferred 9.9 million shares that the unit currently owns at the University of Medicine and Pharmacy Hospital - Hoang Anh Gia Lai. This amount of shares corresponds to the ownership ratio of 99% of the charter capital. According to the previous announcement, this amount will be used by the company to pay the principal and interest of the maturing bonds issued since 2016.
Previously, Hoang Anh Gia Lai also sold Hoang Anh Gia Lai Hotel located at No. 1 Phu Dong, Phu Dong Ward, Pleiku City, Gia Lai Province, earning about 180 billion VND to pay off due interest debts.
Continuously having to sell assets to pay off debts even though business still makes hundreds of billions in profit every quarter
The strange thing is that in recent times, Hoang Anh Gia Lai's business situation has been relatively good, recording profits of hundreds of billions of dong each quarter.
In the Q3/2023 financial statement, HAGL recorded revenue of VND 1,889.4 billion, up 31.1% over the same period. Profit after tax was VND 324.6 billion, up 12.2%. Of which, the sudden increase in profit came from the liquidation of fixed assets, contributing VND 144.1 billion to the company's Q3 business results.
As of the end of September 2023, HAGL is borrowing a total of more than VND 7,778.8 billion. This includes VND 3,930 billion in short-term loans and VND 3,848 billion in long-term loans. The amount of domestic regular bond loans is up to more than VND 5,166 billion.
In October 2023, Hoang Anh Gia Lai's revenue also recorded 711 billion VND, an increase of 52.3% over the same period. The fruit tree segment contributed 57.7%, equivalent to 410 billion VND. The livestock segment recorded revenue of 198 billion VND, equivalent to 27.8%. The supporting industry was 103 billion VND. In October, the company continued to not announce profits as it did in previous monthly reports.
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